TaxTMI 
TaxTMI 
Regarding DS2 & Purchase against C-Form
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....egarding DS2 & Purchase against C-Form<br> Query (Issue) Started By: - PARVEEN ARORA Dated:- 1-9-2016 Last Reply Date:- 2-9-2016 VAT + CST<br>Got 6 Replies<br>VAT / Sales Tax<br>Delhi dealer purchases the material from Punjab dealer against C-Form & give instruction to the Punjab dealer to directly dispatch the material to the consumer in other states except Delhi. Physical material not entered i....
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....n Delhi. Is Delhi dealer liable to file DS2? Is the purchase against C-form is allowable or not in D-Vat Act? Reply By Ganeshan Kalyani: The Reply: Sir, 1) Delhi dealer is not required to file DS2. 2) yes purchase against Form C is allowed inin Delhi. The transaction is a Sale-in-Transit. Thanks Reply By YAGAY AND SUN: The Reply: As we understood this transaction comes under purview of S....
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....ection 3 (a) of CST Act, 1956. In simple words it is a kind of Bill to Ship to Transaction which are allowed in Interstate Sales. Relevant CST Forms are C and E-1. However, DS2 shall not be applicable in this transaction since goods are not physically being entered in Dehli Reply By CS SANJAY MALHOTRA: The Reply: Wherever Invoice issued from manufacturer's place has mention of Bill to Party ....
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....as Delhi party address and Ship to as Customers address outside Delhi, the same is planned sale at factory gate and does not fall into "Sale in Transit". Various appellate judgments have upheld this view. Sale in Transit means that the goods are sold on the way to final destination and the buyer of goods are not aware of his Customer. In that case, LR is endorsed by Delhi Buyer in favou....
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....r of his buyers. Reply By Ganeshan Kalyani: The Reply: Sir, I have come across case law wherein it was mentioned that even if the subsequent buyer was know before the first transaction takes place it is within the provision of In-transit sale. The condition which was emphasized was that the material purchased is routed to subsequent buyer without taking the delivery of the such goods. Sir, Sri....
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.... Sanjay Sir, I would agree with your views in a way that if there are case laws supporting the contention that it is a sale in Transit then there are equal number of case laws standing against such views. Thanks. Reply By CS SANJAY MALHOTRA: The Reply: Dear Sh. Ganeshan ji, Agreed with you and depends upon assessing officer to take call on case to case basis. Thanks for sharing sir, really appr....
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....eciate as makes the discussion healthy. Reply By Ganeshan Kalyani: The Reply: Sri Sanjay Sir, thanks for your inputs and discussion. Healthy discussion really. Thanks.<br> Discussion Forum - Knowledge Sharing ....